Apollo Hospitals Enterprise (APHS) reported a strong consolidated revenue growth of 18 percent year-on-year for Q4 FY26, with all major segments performing well. The hospital and pharmacy divisions showed sustained healthy growth, while group margins improved due to a significant reduction in online pharmacy losses and strong performance from Apollo Health and Lifestyle Ltd (AHLL).
Hospital revenues increased by 16 percent year-on-year to ₹3,270 crore, with an average revenue per patient (ARPP) growing by 9.2 percent, supported by a richer case mix, including a 22 percent rise in its specialized CONGO-T services. Looking ahead, the company projects a revenue compound annual growth rate (CAGR) of 16 percent from FY26 to FY28, as approximately 1,400 new beds are expected to become operational by FY28, with about 900 expected to launch in FY27 and the remainder in FY28.
In the pharmacy segment, revenues surged by 20 percent year-on-year to ₹2,850 crore, primarily driven by a 21 percent increase in offline sales. The company anticipates sustaining this momentum through the addition of approximately 600 stores annually, mid-teen same-store sales growth (SSSG), and high-teen online gross merchandise value (GMV) growth, projecting an 18 percent revenue CAGR over the medium term.
Although FY27 is expected to absorb some short-term margin dilution due to capacity expansions, the company anticipates a 100 basis points increase in group EBITDA margins to 16 percent over the FY26-FY28 period.
Key growth drivers include EBITDA gains as new hospitals reach scale, a higher contribution from high-value specialties in the CONGO-T segment, and improved pharmacy profitability as the digital segment becomes EBITDA positive.
The firm maintains a long-term rating with a sum-of-the-parts (SOTP) target price of ₹9,444 by March 2027, valuing the hospital, pharmacy, and AHLL segments at 26x, 25x, and 15x EV/EBITDA, respectively.
Published on May 22, 2026.
